Explanatory Memorandum to COM(2008)183 - Conclusion of the interim agreement on trade and trade-related matters between the EC and Bosnia and Herzegovina

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1. The attached Proposal for a Council Decision constitutes the legal instrument for the signing and conclusion of the Interim Agreement between the European Community, on the one part, and Bosnia and Herzegovina on the other part.

2. In accordance with the negotiating directives adopted by the Council on 21 November 2005, the Commission technically concluded the negotiations of the Stabilisation and Association Agreement with Bosnia and Herzegovina in December 2006. The Commission initialled the text of the Stabilisation and Association Agreement (SAA) and the text of the Interim Agreement with Bosnia and Herzegovina in Sarajevo on 4 December 2007. The Commission is proposing to the Council the signature and conclusion of the SAA but it will enter into force only after ratification by the Community and its Member States on one side and by Bosnia and Herzegovina, on the other.

3. Pending the ratification of the SAA, the Commission, in accordance with the negotiating directives and Article 135 of the SAA itself, is proposing to conclude an Interim Agreement to allow the trade and trade-related provisions of the SAA to enter into force following SAA signature. The Commission has negotiated the text of an Interim Agreement with Bosnia and Herzegovina, initialling it in Sarajevo on 4 December 2007.

4. The trade concessions granted by Council Regulation (EC) No 2007/2000 of 18 September 2000 as amended, introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process, amending Regulation (EC) No 2820/98, and repealing Regulations (EC) No 1763/1999 and (EC) No 6/2000 i will continue to apply, in parallel to the Interim Agreement.

5. The Commission asks the Council, when the Council and Commission will have reached a positive joint review of the political conditionalities i, to approve the results of the negotiations, and to sign and conclude the Interim Agreement on behalf of the European Community on the basis of the attached proposal.